Justia West Virginia Supreme Court of Appeals Opinion Summaries

The case involves the Huntington Sanitary Board (HSB) challenging an order by the Public Service Commission of West Virginia (PSC) that designated HSB as the most suitable capable proximate utility (CPU) to acquire and operate the failing sewer system of the Hubbard Heights subdivision in Wayne County. The sewer system, originally servicing 27 customers, had fallen into disrepair and ceased operations, posing health and environmental risks. The PSC's order was issued under the Distressed and Failing Utilities Act, which aims to remediate struggling utilities.The PSC initiated proceedings after a petition was filed by a former president of the Hubbard Heights Homeowners Association (HOA). The PSC found that the sewer system met the statutory definition of a failing utility and considered various alternatives to acquisition, ultimately determining that acquisition by a CPU was necessary. HSB, along with other utilities, was identified as a potential CPU. The PSC held public and evidentiary hearings, during which no utility expressed willingness to acquire Hubbard Heights. The PSC designated HSB as the most suitable CPU based on its size, financial capacity, and proximity.HSB appealed, arguing that the PSC lacked jurisdiction because the customer count had fallen below the statutory threshold of 25 and that the PSC failed to consider alternatives to acquisition adequately. The Supreme Court of Appeals of West Virginia reviewed the case, affirming the PSC's order. The court held that the PSC had continuing jurisdiction over Hubbard Heights despite the reduced customer count, as the utility had not sought to be divested of its status, and the PSC had not relinquished jurisdiction. The court also found that the PSC had considered alternatives and provided a reasoned analysis in designating HSB as the most suitable CPU, complying with the statutory requirements. View "Huntington Sanitary Board v. Public Service Commission" on Justia Law

Gauley River Public Service District (Gauley River) experienced multiple interruptions in water service to the Mount Olive Correctional Complex (Mt. Olive) over a three-month period. This led the Public Service Commission of West Virginia (Commission) to investigate whether Gauley River was a distressed or failing utility under the Distressed and Failing Utilities Improvement Act. The Commission found Gauley River to be a distressed utility due to its prolonged lack of adequate management and operational deficiencies.The Commission ordered Gauley River to negotiate an operation and maintenance agreement with West Virginia-American Water Company (WVAWC) to provide oversight and managerial control. Gauley River and WVAWC submitted a proposed agreement, but the Commission rejected it, finding it did not meet the required terms. The Commission then ordered the parties to execute a standard operation and maintenance agreement structured by the Commission.The Supreme Court of Appeals of West Virginia reviewed the case. The court held that the Commission acted within its statutory authority under West Virginia Code § 24-2H-7(b) in ordering Gauley River and WVAWC to implement an alternative to acquisition. The court found that the ordered agreement did not amount to an acquisition of Gauley River by WVAWC but was designed to remediate the utility's deficiencies. The court affirmed the Commission's order, concluding that the terms of the agreement were lawful and necessary to address Gauley River's operational issues. View "Gauley River Public Service District v. Public Service Commission" on Justia Law

In this case, Appalachian Power Company and Wheeling Power Company sought to recover approximately $552.9 million in under-recovered costs for the period from March 1, 2021, through February 28, 2023. The Public Service Commission of West Virginia disallowed $231.8 million of the requested amount, concluding that the companies had made imprudent and unreasonable decisions regarding their coal stockpiling, which led to higher costs from purchasing energy rather than generating it themselves. The Commission allowed the recovery of the remaining $321.1 million over a ten-year period with a 4% carrying charge.The Commission's decision followed a series of proceedings, including the 2021 and 2022 ENEC cases, where it had expressed concerns about the companies' reliance on purchased power and their failure to maintain adequate coal supplies. The Commission had previously ordered the companies to increase self-generation and maintain a minimum 69% capacity factor for their coal-fired plants. Despite these directives, the companies continued to rely heavily on purchased power, leading to significant under-recoveries.The Supreme Court of Appeals of West Virginia reviewed the case and affirmed the Commission's finding that the companies acted imprudently and unreasonably. However, the Court reversed the Commission's disallowance of $231.8 million, finding that the Commission had relied on extra-record evidence (coal reports) without giving the companies notice or an opportunity to address this evidence, thus violating their due process rights. The Court remanded the case to the Commission to allow the companies to address the coal reports and the calculation of the disallowance. View "Appalachian Power Company and Wheeling Power Company v. Public Service Commission of West Virginia" on Justia Law

The Supreme Court vacated the order of the Public Service Commission resolving City of Benwood's complaint about the City of Wheeling's increase in the wholesale rate it charged to Benwood for wholesale sewage treatment services by forty-five percent, holding that the Commission exceeded its statutory authority.At issue was whether the Commission exceeded its authority under the plain and unambiguous language of W. Va. Code 24-2-1(b)(6) when it elected to start the jurisdictional, 120-day clock on the date the Commission argued it received sufficient information from Wheeling to resolve the dispute between the two cities. The Supreme Court vacated the order below, holding that the Commission exceeded its statutory authority by entering its final order more than 120 days after Benwood filed its complaint. View "City of Wheeling v. Public Service Comm'n of W. Va." on Justia Law

The Supreme Court affirmed the order of the Public Service Commission of West Virginia (PSC) ordering Equitrans, LC, a natural gas interstate pipeline company, to permit Hope Gas to connect a natural gas field tap on property owned by Ronald and Ashton Hall to Equitrans' "gathering line," holding that the PSC properly exercised jurisdiction in this matter.Seeking to divest itself of its gathering facilities Equitrans applied to the Federal Energy Regulation Commission (FERC) to abandon and sell its gathering facilities. FERC approved the application. When Equitrans denied Hope Gas's request to reestablish a service connection to the Halls' residence the Halls filed their complaint with the PSC. The PSC found that it had jurisdiction over the gathering facilities. The Supreme Court affirmed, holding that the PSC properly exercised jurisdiction over the gathering facility at issue. View "Equitrans, L.P. v. Public Service Comm'n of W. Va." on Justia Law

The Supreme Court affirmed the order of the West Virginia Public Service Commission that invalidated a $50 water disconnect fee charged by the Mason County Public Service District as an unreasonable practice, holding that the substantive result of the Commission's order was not improper.While investigating a complaint about residential water service that had been disconnected for nonpayment, staff at the Commission noticed that, when it computed arrearages, the District charged the water disconnect fee in addition to a $50 reconnect fee. Even though the original complaint made no mention of the fee, the Commission invalidated the disconnect fee as unreasonable. The Supreme Court affirmed, holding (1) the Commission acted within its authority in investigating and invalidating the disconnect fee; and (2) the substantive result of the Commission's order was consistent with its precedent and rules. View "Mason County Public Service District v. Public Service Commission" on Justia Law

The Supreme Court affirmed the rulings of the Public Service Commission of West Virginia's (PSC) final order and its order denying the City of Wheeling's (Wheeling) petition for reconsideration and motion to stay, holding that the PSC had jurisdiction over the dispute when it issued its final order and that there was no error in the PSC's decision.After the City of Benwood brought an action challenging Wheeling's revised rate for sewer treatment services the PSC began an investigation. In its final order, the PSC recalculated the revised rate for Wheeling's sewer treatment services. Wheeling then filed a petition for reconsideration and a motion to stay, arguing that the PSC lacked subject matter jurisdiction when it issued the final order. The PSC denied Wheeling's petition and motion. The Supreme Court affirmed, holding that there was no error in the proceedings below. View "City of Wheeling v. Public Service Commission" on Justia Law

The Supreme Court affirmed the order of the Public Service Commission of West Virginia (PSC) approving the application of one of Ambassador Limousine and Taxi Service (Ambassador) to transfer the common motor carrier certificate held by Classic Limousine Service, Inc. (Classic) to Ambassador, holding that there was no error.SRC Holdings, LLC, doing business as Williams Transport (Williams), appealed the PSC's order approving Ambassador's application to transfer its common motor carrier certificate to Ambassador, arguing that Classic's motor carrier certificate was nontransferable and that Ambassador's proposed use of the certificate would create new competition in the same territory that Williams serviced. The Supreme Court affirmed, holding that the PSC's reasoning in reaching its decision was legally sound and supported by the evidence. View "SRC Holdings, LLC v. Public Service Commission of W. Va." on Justia Law

The Supreme Court affirmed the order of the West Virginia Public Service Commission (PSC) finding that it did not have statutory jurisdiction to consider Petitioner’s complaint challenging the Greater Harrison County Public Service District’s (the District) rate increase, holding that the District was not subject to the PSC’s jurisdiction with regard to ratemaking authority.In 2015, the Legislature adopted deregulation measures to limit the PSC’s jurisdiction and to exempt larger public service districts from the requirement that the district obtain approval from he PSC before changing the rates it charged for water or sewer service. After 2015, larger public service districts, statutory defined as having at least 4,500 customers, were only required to obtain approval of a rate change from a local elected body. After the Harrison County Commission approved a rate increase sought by the District, Petitioner, a District customer, brought suit arguing that the PSC had jurisdiction because the District did not have at least 4,500 customers. The PSC found that the District provided service to at least 4,500 customers, and thus, it did not have jurisdiction to examine the District’s rate increase. The Supreme Court affirmed. View "Pool v. Greater Harrison County Public Service District" on Justia Law

The Supreme Court affirmed the order of the Public Service Commission finding that the Jefferson County Public Service District may “indefinitely delay” a project to upgrade its sewer service, holding that the Commission did not exceed its authority or make factual findings that were not supported by adequate evidence and that the substantive result of the Commission’s order was not improper.The Supreme Court may reserve an order of the Commission when it exceeded its authority, it made factual findings that were not supported by adequate evidence, and the substantive result of the order was not proper. In affirming the Commission’s order, the Court held that, under the facts of this case, none of these three situations applied. View "Jefferson County Citizens for Economic Preservation v. Public Service Commission of West Virginia" on Justia Law